n Tolbert v Morgan Waterfront Homes, LLC, an adversary proceeding brought in a Chapter 13 case in the Bankruptcy Court for the Eastern District of Michigan. the Debtor purchased a home and gave the seller back a mortgage for the purchase price. The seller subsequently recorded a quit claim deed purporting to be from the purchaser to the seller and brought an eviction proceeding as landlord. The purchaser disputed title and the eviction proceeding was dismissed. The seller then brought proceedings to foreclose the mortgage by advertisement and the purchaser, now debtor, filed a Chapter 13 case.
The debtor filed an adversary proceeding alleging conversion and slander of title against the seller/mortgagee. The seller filed a motion for summary disposition on all counts. After reviewing the state of Michigan state law, the court concluded that an action of conversion cannot lie for real property, only personal property, and granted the seller/mortgagee summary disposition. However, the court found that issues of fact remained whether recording the purported quit claim deed constituted slander of title.